Uruguay Fintech ecosystem
With a population of only 3 million people, Uruguay ranks as one of the countries with the smallest population in South America, only ahead of Guyana, Suriname and French Guiana. However, Uruguay characterizes by being a country with a high income per capita and low inequality and poverty. Middle class in Uruguay is also the highest in America and represents about 60 percent of population (World Bank, 2021)
As for the impact of covid-19 on the Uruguayan economy, it caused it to fall 5.9 percent in 2020, ending the longest period of economic growth in Uruguayan history after 17 consecutive years (America Economía, 2021). Nevertheless, it is expected that Uruguay will recover in 2021 with a growth of 2.7 percent (BBVA Research, 2021)
SME´s in Uruguay are also a big part of the country´s economy and they represent almost 90% of the total enterprises. Nevertheless, many often have difficulties accessing quality loans or agile, accessible and affordable solutions that meet their reality (Bnamericas, 2021)
Fintech in Uruguay
Uruguay has seen incredible advance in last year mainly due to one reason. Uruguay currently has a unicorn called dLocal, which reached a valuation of 1.2 billion dollars. Taking into account the number of inhabitants in the Uruguayan country and the growth of Fintech companies, this has made the country advance considerably in Latin America, positioning itself in second place in the region. Likewise, the capital Montevideo, is positioned in second place in terms of the cities with the greatest advance in the Fintech sector in Latin America (Findexable, 2021)
As of 20219, Uruguay had more than 30 Fintech companies, mainly concentrated in the lending and payment categories. In the case of the largest lending Fintech companies in Uruguay, we have Alrestamo, a Fintech of Argentine origin, which has established itself in Uruguay as one of the largest companies since it issues half of the digital credits in Uruguay (Yahoo, 2021)
Based on the demographics of Uruguay, Fintech can have a great impact on Uruguayans and introduce new financial technologies into their lives, just as dLocal did. This will allow financing verticals to support SMEs in finding financing in a faster and more accessible way.
